Where Does UNIQLO'S Business Philosophy Come From?

There are two things that grow and die.

In China, Japan

In recent years, performance has shown signs of weakness.

But there are also some brands that are exceptions.

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It was only in 2002 that it entered China.

The brand was once washed away by Baleno, Giordano and other leisure brands.

Today, it has become the world's fourth largest clothing brand in Asia and ZARA, H&M and GAP, while Baleno and Giordano are in the closures.

1 Japan's richest seller of clothing

Clothing is one of the oldest industries in the world, and it is also one of the industries that generate the richest richest people.

Spaniard Amancio Ortega, with the ZARA brand, topped the world's richest man; Swedish Stephen Persson was the richest man in Sweden by H&M.

Japan's richest man has been the two person to take turns in recent years. One of them is Sun Zhengyi, founder of Softbank group, and the other is the clothing giant and founder of UNIQLO Ryui Masa.

According to the world clothing and shoe net, in 2009, when 60 year old Ryui Masa became the richest man in Japan for the first time, many people were surprised, not only because of the wealth of 6 billion 100 million dollars, but also because he was a clothing seller.

The most surprising thing is that this big man who created the miracle of the clothing industry, more than 30 years ago in his university age, is still a "decadent" youth who believes in non work.

At that time, Ryui Masa wandered in the movie theater and the video game hall. All day long, he thought, "how to mix and not work", and regard it as the best state of life.

Even the Anti Japanese American security agreement movement, which was then on the Japanese campus, failed to infect him, but instead took the time to travel around the world.

From the United States to Europe, from India to Arabia Peninsula...

After wandering around, Ryui Masa found that most people in the world are busy with their livelihoods every day, regardless of race or race.

Finally, a conclusion is drawn: it seems that we should also work.

Liu graduated from Waseda University after he left school, and did not find the right job.

Finally, forced to earn a living, he had to help his father's small clothing store.

But he didn't like this job, so when he took over in 1972, he complained to his father: "he is not suitable for retail business!"

In his hand, this small clothing store with only six employees has lost 5 people in half a year.

In the case of only one person and business unsustainable, Liu well, who once hated work, began to reverse.

Ten years later, in 1984, the first store in UNIQLO was born in Hiroshima.

From this point of view, UNIQLO began its fission growth. By 2017, the number of stores in the world has reached more than 2000, with an annual turnover of 1 trillion and 860 billion yen.

In Japanese business history, there has been a shortage of world-class costume Empire, and UNIQLO is an exception.

In the 30 years that the Japanese economy lost, the local brand has increased by more than 200 times in the case of a sharp reduction in clothing spending, a decline in sales of many stores and clothing stores and even bankruptcy.

Especially in recent years, when ZARA, H&M and other fast fashion brands have experienced growth bottlenecks and have to close frequently, UNIQLO has been "expanding", not only expanding online stores, but also winning double eleven sales titles online.

What made the once decadent Ryui Masa create a miracle?

2, we must be first.

On the way of Ryui Masa's counterattack, two people had the greatest influence on him.

One is his father.

Ryui Masa, a teenager, had no ambition to play truant all day.

Every night, he was impatiently sleeping in his father's abuse when he wanted to be the first and the first to do everything.

At that time, Liu Jing Zheng could not understand his father's hate iron.

It was not until 1972 when he took over his father's business and ran into a dilemma that he remembered this sentence.

"Yes, since we choose to do the clothing business, we must do well." at that time, a feeling was that after many years, Liu became the foothold of his successful experience.

In his view, the biggest secret of UNIQLO is its early ambition to become an industry leader.

As early as UNIQLO was a small company, Liu well was instilling a new idea of UNIQLO to become the "world first" for all new employees, and everyone should make unremitting efforts towards this goal.

In business operations, many people lack ambitious goals. They take a step by step and believe that as long as they work hard, they will have a good result.

This kind of thinking is very easy to shake when it comes to difficulties, and ultimately leads to taxing.

Unlike Ryui Masanori, he took the clockwise rule and started from the end.

This approach comes from another person who has the greatest influence on him, Harold Genin.

Harold Genin, the founder of ITT, scorned academic and bookish.

In his view, reading should follow the order from beginning to end, and business operation is the opposite. We should start from the goal of the end and step by step to push forward what we should do at each stage.

Ryui Masa read Harold Genin's thoughts for the first time, as if he was struck by lightning.

That year, he set a great goal for himself at the age of 23, making it the world's first casual clothing chain.

Taking this overall goal as the starting point, Ryui Masa launched a medium and long-term goal, such as UNIQLO stock must be listed, and its performance will grow at a high level, with annual turnover exceeding 1 trillion yen.

To achieve these medium-term goals, UNIQLO will open 100 branches in Japan, including 30 new branches opened every year from 1991 to 1993.

Push down again to achieve the goal of opening 30 new stores a year, and what to do quarterly, monthly and weekly.

Through layers of decomposition, Ryui Masa turned a seemingly innocent goal into a practical plan and turned them into reality one by one.

3 reduce SKU and do basic money

If you have a goal, you can do things with focus, and to do it well, you need to focus on it as well.

Unlike ZARA, H&M and other fast fashion brands, the pursuit of speed and the amount of money are different. UNIQLO is the main player in the field.

In a single HEATTECH series, global sales are broken by 1 billion, which is called the most clothing selling enterprise in Asia.

What is the basic money? It's a lot of money that everyone can wear, such as T-shirts, jeans, underwear and shirts.

Liu well has long observed that in the daily operation of clothing stores, basic funds usually account for 30% of total sales, and most consumers mix the popular and basic funds of each season.

Although popular money attracts eyeballs, most of them are short-lived, and the basic demand is not only large, but also often sold.

To do business is to grasp the essence. In Ryui Masa's eyes, this essence is that the strongest products will drive everything.

And the strongest product of UNIQLO is undoubtedly the basic fund.

It is this kind of different cognition of essence that makes the genes of UNIQLO different from those of ZARA and H&M.

ZARA and H&M focus on moving fashion and popular elements on the T platform to the retail store as fast as possible.

Because of the inability to predict sales volume, this replication is based on a small amount of money.

UNIQLO pays more attention to the technological innovation of single product. It has the guarantee of basic sales volume, and there is no need to worry too much about the style and how much inventory it needs.

In Ryui Masa's view, clothes are parts of clothing, and how to combine them is the freedom of consumers.

The task of UNIQLO is to produce spare parts. Whether you are Korean or European and American, Lolita or Bohemia can not do without me.

To this end, UNIQLO substantially reduced SKU (the smallest available unit of inventory) and excavated standardized products as much as possible.

As a result, the SKU of UNIQLO is much lower than that of other enterprises.

In terms of style, UNIQLO launches only 1000 garments a year, only 1/10 of ZARA and H&M, and the highest grade of SKU is 90 thousand, which is based on UNIQLO.

Fewer SKU makes UNIQLO meet all the needs of 70 factories only. Compared with 1000 of other garment giants, UNIQLO's inventory pressure is very low, and the chances of making mistakes are much less.

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4 fight technology, improve product force

The basic money is good, but compared with fashionable fashion, it is easy to crash, it is difficult to wear color, giving people a feeling of low end.

In this regard, UNIQLO's way is to spell technology to make a sense of luxury goods.

Low price represents low quality and low style. This is almost an iron rule in the clothing industry and even in many other industries.

The early UNIQLO failed because of this iron rule, but Ryui Masa finally overturned it.

In order to improve the quality of products, UNIQLO has done deep research in the limited basic funds, and has been doing deep excavation on the details of color, fabric and technology, so as to ensure the sales volume of each single product, and build an insurmountable moat.

In terms of color and style, UNIQLO designs various colors and styles for each SKU, covering all men, women, old and young.

Fabric is UNIQLO spend the most mind, and most of the outside world.

Take the 1 billion series of HEATTECH series as an example, its biggest selling point is to exhaust heat and keep warm.

As early as in 2003, UNIQLO, aiming at the biggest pain spot of the winter warm clothing, cooperated with the Japanese textile giant Dongli to develop the high-tech microfiber, which is thinner, more dry and comfortable compared with ordinary fabrics.

Since then, UNIQLO has continuously innovating this kind of fabric, increasing its antibacterial and antistatic functions, and finally creating a best-selling global super explosive product.

Fleece is another great idea of UNIQLO. It was born 20 years ago, because it was warm, comfortable and easy to clean, and it was sold in autumn and winter in 1998.

Today, it has become a popular fabric.

In addition to fabric, UNIQLO's high standard in technology is also known in the industry.

In the clothing industry, the average defective rate is 2% - 3%, while UNIQLO requires the factory to reduce the defective rate to 0.3%, and even the thread of 0.5 mm is considered defective.

By incorporating fabric technology and advanced technology into products, UNIQLO redefines the value of clothes, so that consumers can get a better dressing experience and make them wear aura of technology companies.

5 mistakes nine times, nine times experience.

Running a business is a near death.

In the history of UNIQLO's growth, it has gone through numerous dangers and suffered a lot of losses. But every time Ryui Masato looked very calm. "The key is to try. It's okay to be wrong. Wrong nine times, there are nine experiences."

In 1994, UNIQLO plans to enter the US market and set up a branch in New York to collect fashion information in the United States, design in Japan, produce in China, and then sell it to the United States.

Abacus played a very good job, but after the launch of the product, the basic design of monochrome in Japan was sold very well in East Asia, but in the United States, it suffered a cold shoulder. Finally, the US branch had to declare its closure.

After that, Ryui Masa realized that product planning, research and development and sales must be integrated, and distraction would only increase communication barriers.

In 1996, UNIQLO acquired a children's clothing development company called VM, which was involved in the growing children's wear market.

But VJ, the parent company of VM, owns the trademark rights of VM.

In order to continue to use the trademark, UNIQLO had to pay the VJ brand royalty.

Later, VM gained independence, and VJ was unable to charge the brand's royalty again, and VM was taken to court.

Ryui Masa, who knew nothing about winning, had to give up and realized that there was a risk in getting out of the sea by boat, and he had to master the initiative in everything.

In 2001, Liu Jing, who was a great success in the Japanese market, started radical overseas expansion. He plans to open 50 stores in London in 3 years.

But all the way to twenty-second, they were losing money and finally had to close 16.

Afterwards, Ryui Masa attributed the failure to "blind expansion" before establishing brand awareness.

A few years later, when UNIQLO entered the US market, he learned lessons from losing London. First, he opened the international flagship store in Fifth Avenue, New York, and then expanded to other places.

The result was a great success.

Despite many failures, UNIQLO did not fall down, but became popular all over the world.

Years later, Ryui Masa compiled the secret of UNIQLO's success into a book called "one win, nine defeats."

6 stability growth is disease.

Ryui Masa is a stubborn person. When he was a child, he had a nickname called "mountains and rivers". Because others said "mountain", he had to say "water", but he did not seem to "disobey" others, so he could not see his existence.

Once a stubborn person changes, it will be thorough and ten cows will not be able to pull back.

Taking the business of taking over father in 1972, there are two totally different Ryui Masa before and after.

Liu Qian was "decadent" and had no enterprising spirit. Later, Liu well was just like a professional madman.

His father's business honed and changed him.

During the period when he just took over, Ryui Masa was woken up every day in the nightmare of company failure due to bad management.

But tribulation is the best incentive for stubborn people.

That is, from then on, Ryui Masa became aggressive and challenged the status quo and regarded it as the stupidest thing.

In 1991, when the Japanese economy plummeted, other businesses were shrinking. Ryui Masa was busy expanding, and set a radical goal of adding 30 stores a year and breaking the number of stores in 3 years.

The staff members were shocked and shook their heads and said "impossible".

Ryui Masa said, "we must set high goals for ourselves. If we only want stability, growth will stagnate."

Since 2001, UNIQLO has fallen into two years of recession due to diversification failure, and its performance has declined sharply.

In the face of danger, Ryui Masa came to Tamatsuka Shimotochi, who worked in the Asahi region, to take charge of UNIQLO.

Three years later, under the leadership of Tamatsuka Shimotochi, UNIQLO stepped out of the predicament and began to resume its growth.

Just when everyone thought that Yu Chung Yuan would be reused for a while, Liu well was replacing Tamatsuka Shimotochi with himself.

The reason is that he thinks that the growth rate of UNIQLO is too slow, and put forward the goal of achieving sales of 1 trillion yen in 2010.

Japanese society is under the influence of collectivism and moderation. It is generally believed that rapid growth is not good. But Ryui Masa "deviated" and believed that stability and growth are diseases, and no growth and death are two.

Under this radical strategy, UNIQLO continued to grow rapidly and opened its stores to all parts of the world.

UNIQLO employees, too, are running tirelessly under the bosses' bosses.

Once it is not aggressive enough, it is very likely that the boss will throw a hard word: "no swimmer, let him drown."

Because the staff are too strict, Liu well is called "cold hearted person", and UNIQLO is also known as "black factory".

But it is precisely this kind of severity that urges UNIQLO to grow every day, increasing from less than 100 million yen in 1972 to 1 trillion and 860 billion yen in 2017, becoming the four largest clothing brand in the world.

Ryui Masashiya became a world-renowned entrepreneur.

Ma Yun once said that around the world, he admired two entrepreneurs most, one was Starbucks founder Schultz and the other was Ryui Masa, who sells clothes.

Interestingly, Ryui Masa, who was puzzled by the future of UNIQLO in 1987, visited Hongkong to visit Giordano founder Li Zhi Ying, seeking cooperation.

Though rejected by the other party, he learned the idea of Fast Retailing.

The trip to Hongkong gave Liu Jing Zheng confidence. "There is no reason why my ugly Li Zhiying can do something wrong."

More than 30 years later, when UNIQLO opened and sold all over the world, Giordano fell into a closed shop. In 2017, its revenue was only 4 billion 380 million yuan, less than 1/20 of UNIQLO.

More interesting reports, please pay attention to the world clothing shoes and hats net.